Customer Relationship Management Flashcards

Which metric best estimates the total net profit a business expects from the entire future relationship with a customer?

Answer: Customer Lifetime Value

Customer Lifetime Value projects the net profit attributable to a customer over the whole relationship.

A service manager segments customers by purchase frequency, recency, and spend. Which model is this?

Answer: RFM analysis

RFM stands for Recency, Frequency, and Monetary value, a common CRM segmentation approach.

What is the primary purpose of a single customer view in a CRM system?

Answer: Consolidate all interactions and data about a customer in one record

A single customer view unifies data from all touchpoints so every team sees the same history.

A customer who has not purchased in 18 months and ignores emails is best described as which lifecycle stage?

Answer: Lapsed or churned customer

Extended inactivity and non-engagement indicate a lapsed customer suited to win-back efforts.

Which action most directly supports customer retention rather than acquisition?

Answer: Launching a loyalty program with tiered rewards

Loyalty programs reward repeat behavior and encourage existing customers to stay.

What does a high customer churn rate most clearly signal?

Answer: Customers are leaving faster than the business can sustain

Churn rate measures the percentage of customers lost in a period, so a high rate means significant attrition.

Which CRM component stores a chronological record of calls, emails, and meetings with a customer?

Answer: Activity or interaction history

Activity history logs every touchpoint so any team member can understand context.